If you are adding ballast to a car to get it into a race (sole reason) then put the ballast in the middle, or slightly back, maybe 5 or 10. This will help you keep the same balance through accelerating, braking and turning.
If you are running without ABS, and your rear wheels lock up easily (Mazda Roadster being a good example) whack a bit of weight over the back wheels to give the rear more grip in braking (body weight shifts forward during braking)
In an FF, as you accelerate the body weight shifts to the rear, so whack some weight over the front wheels to give you more grip off the line & when accelerating in the corners.
An FR can be trickier ... You have to drive the car and feel how it drives, if it understeers try to tune it out first, if you still have understeer then try a little bit of ballast up front, if you have bad oversteer then try a bit of weight on the rear but be careful, extra weight on the rear can just cause a pendulum effect when you do get oversteer.
MR cars again, you just have to try it, I'd go for a bit of weight up front, but it depends on your driving style.
Mine for example, is different as my Supra for example has ballast in the front bumper (being an FR) but my Mazda Roadster (also an FR) has ballast over the rear wheels to reduce the amount the rear wheels lock up.
As for the downforce ... Higher downforce will give you higher grip as your car is pushed into the ground more ... However, to get the downforce the aero parts on your car have to manipulate the air, thus causing drag, thus making it harder for your car to achieve its top speed, but the grip it gives you can make a huge difference to cornering speeds.
Lower downforce will give you a higher top speed as your aero parts aren't manipulating the air, therefore there is much less drag but because there is less drag & less grip, your cornering speeds are hugely reduced.